Bank Transfers

[Capealava]

I was just asked by my USA bank if I wanted future wire transfers (USA BANK to Bangkok Bank) transfered in Thai baht or dollars. Since I am new to this, which currency would be the best to use? Or is there any difference ?

[jcgodber]

ONLY TRANSFER $U.S, DOLLARS you will lose money if you wire Baht. It is an on shore off shore thing. I lost several hundred $$$ on a transfer last year I have learned my lesson the hard way. My U.S. banker thought that he was giving good advise to first change to baht. DON"T do it.

Good luck

[Jingthing]

Agreed. Dollars. Definitely.

[Naam]

it all depends what rate your bank is offering. i am posting since two years "check first" but of course the 'know-it-alls' just follow the wide spread gospel which applied exclusively during the times of two-tier rates which is not the case anymore.

keep up the good job and be happy!

[JimGant]

it all depends what rate your [uSA] bank is offering

Which will always be worse than the rate you'll get in Thailand. The baht is thinly traded in the US -- the dollar is widely traded in Thailand. Thus, better (read: market) exchange rates in Thailand.

Unless you know the dollar will tank during the one-day SWIFT transfer time frame to Thailand, send dollars.

[chiang mai]

And the correct answer is to check first because periodically, offshore rates are better than onshore, case in point is right now where the range of USD/THB TT rates from eight Thai banks (onshore) is 32.50 to 32.60 yet XE (offshore) shows 32.69 and Reuters (offshore) shows 32.67. http://bankexchangerates.daytodaydata.net/default.aspx

[Naam]

it all depends what rate your [uSA] bank is offering

Which will always be worse than the rate you'll get in Thailand. The baht is thinly traded in the US -- the dollar is widely traded in Thailand. Thus, better (read: market) exchange rates in Thailand.

Unless you know the dollar will tank during the one-day SWIFT transfer time frame to Thailand, send dollars.

for the record:

-not everybody uses a bank located in the Greatest Nation on Earth™.

-the Dollar has tanked vs. Thai Baht during the last days each and every day.

[PattayaParent]

It also depends on what you're sending the money for.

If it's to buy a condo then it must be received in foreign currency and converted in Thailand.

[Naam]

It also depends on what you're sending the money for.

If it's to buy a condo then it must be received in foreign currency and converted in Thailand.

that is not correct. it is sufficient that the money is transferred from abroad.

[ianguygil]

The money has to be transferred into Thailand in the form of foreign currency. It also has to clearly specify in the BTB (Bank to Bank) information that the funds are for the purpose of a condominium in Thailand. Then the bank will do an FX transfer to THB and will give you a form you can use when you go to the land department to transfer the condo title.

Richard Ellis has a good link on this (you probably won't find the specific on our website or that of other banks)

http://www.cbre.co.th/en/Bangkok-property-...to-Thailand.asp

In almost all other cases it is also best to make the FX in Thailand for large currencies like the USD as the rate will be much better, unless you are using a branch of Bangkok Bank in NY, London, Tokyo etc. As stated the THB is NOT a major currency in FX markets and the rate you will get in general if you change in the UK or US will be bad compared to Thailand (unless using an offshore BBL branch)

Good luck

Edited March 4, 2010 by ianguygil

[chiang mai]

The money has to be transferred into Thailand in the form of foreign currency. It also has to clearly specify in the BTB (Bank to Bank) information that the funds are for the purpose of a condominium in Thailand. Then the bank will do an FX transfer to THB and will give you a form you can use when you go to the land department to transfer the condo title.

Richard Ellis has a good link on this (you probably won't find the specific on our website or that of other banks)

http://www.cbre.co.th/en/Bangkok-property-...to-Thailand.asp

Good luck

That's correct for real estate purchase purposes but the OP simply asks about transferring funds thus he has more choices.

[ianguygil]

You will still get the best rate by transferring foreign currency rather than doing the FX offshore into THB, unless using a BBL branch as already mentioned. I thought I made that clear when I said

"In almost all other cases it is also best to make the FX in Thailand for large currencies like the USD as the rate will be much better, unless you are using a branch of Bangkok Bank in NY, London, Tokyo etc. As stated the THB is NOT a major currency in FX markets and the rate you will get in general if you change in the UK or US will be bad compared to Thailand (unless using an offshore BBL branch)"

And the instuctions only pertain to purchasing condos, although it never hurts to state why you are moving funds, even if you just say living expenses etc.

[PattayaParent]

It also depends on what you're sending the money for.

If it's to buy a condo then it must be received in foreign currency and converted in Thailand.

that is not correct. it is sufficient that the money is transferred from abroad.

Has this requirement changed recently?

[Jingthing]

For US to Thailand transfers there is no need to check the rates. You will always do better sending dollars. Why complicate something that isn't?

[ianguygil]

No, this has been the requirement for several years, at least 8. Maybe longer.

[Jingthing]

For condos, it is my understanding is that you must NOT send baht.

[chiang mai]

And the correct answer is to check first because periodically, offshore rates are better than onshore, case in point is right now where the range of USD/THB TT rates from eight Thai banks (onshore) is 32.50 to 32.60 yet XE (offshore) shows 32.69 and Reuters (offshore) shows 32.67. http://bankexchangerates.daytodaydata.net/default.aspx

I can only reiterate that offshore rates on USD/THB exchange is better currently than onshore rates and if you doubt this, please feel free to check. Now having said that I personally almost always make my currency conversions offshore although there have been times when I have made them offshore in Hong Kong, because the rate was more advantageous and because I use an FX service there that's cost effective for such things. But since I never make transfers of USD from the US with a view to exchanging those funds into THB so maybe there's a piece of the logic that I don't see currently as to why it's always better to do this in Thailand. BTW, I don't have to pay transfer fees or commissions in Hong Kong because of the account I hold there and I am aware that the same account types exist in the US so I really am stymied here.

[chiang mai]

No, this has been the requirement for several years, at least 8. Maybe longer.

Can you please post a link confirming that fact because I don't share you understanding on this point and I have bought and sold condo's a couple of times over that period.

EDIT: in case there's confusion on this point, I support the idea that funds for property purchases must be imported from overseas, in foreign currency.

Edited March 4, 2010 by chiang mai

[caf]

For US to Thailand transfers there is no need to check the rates. You will always do better sending dollars. Why complicate something that isn't?

Not always true. jingthing. Usually is i agree, but not always. look at chiangmai's posts. he is correct

[caf]

And the correct answer is to check first because periodically, offshore rates are better than onshore, case in point is right now where the range of USD/THB TT rates from eight Thai banks (onshore) is 32.50 to 32.60 yet XE (offshore) shows 32.69 and Reuters (offshore) shows 32.67. http://bankexchangerates.daytodaydata.net/default.aspx

Absolutely correct.

On another matter, regarding hsbc exchange rates etc; there is a quick way to check the rates given by Thai banks

google bangkok bank thailand, one of the site options is a further bbk bank site but it lists the exchanges for all thai banks. guess where hsbc is on that list!!

[chiang mai]

And the correct answer is to check first because periodically, offshore rates are better than onshore, case in point is right now where the range of USD/THB TT rates from eight Thai banks (onshore) is 32.50 to 32.60 yet XE (offshore) shows 32.69 and Reuters (offshore) shows 32.67. http://bankexchangerates.daytodaydata.net/default.aspx

Absolutely correct.

On another matter, regarding hsbc exchange rates etc; there is a quick way to check the rates given by Thai banks

google bangkok bank thailand, one of the site options is a further bbk bank site but it lists the exchanges for all thai banks. guess where hsbc is on that list!!

I want to say, show me the money but I wont, instead can you provide the link, please, it's not that I doubt you it's just that BOT has so many links, you might be able to find it more easily. BTW, is this how you did the transfer we were discussing recently, by using BBK offshore, just curious, still?

[Pib]

Transfer in dollars. I think it would be a rare case if your USA bank gave a better dollar to baht rate. From my research, most USA banks give you 3-5% less if you send Baht vs Dollars (i.e., let them convert to Baht before transmitting the money). That 3-5% less gives them a very nice additional profit on top of the other transfer fees. That's probably the real reason that the bank customer service called you in hopes of you automatically saying, "Yea, transfer in Baht since Baht is what I need."

For your incoming dollars, Bangkok Bank will give you the "TT" rate minus a 200 Baht (min) to 500 Bath (max) fee, depending on the arriving amount. Based on my personal experience you'll most likely get TT Rate 1 for the day, especially if it's a reoccurring/monthly transfer. And be sure to take into account any small amount that might be sliced off if sending through an intermediary bank. In fact when you use Bangkok Bank's New York Branch "automatic clearing house routing number," that branch will slice off $5 up to a $2000 transfer; a little more for higher transfer amounts. But that amount sliced off is usually less than going the higher cost SWIFT wire transfer route direct to Bangkok Bank in Thailand plus the lower Baht rate if letting your USA bank send in Baht vs Dollars.

Summary: send in dollars as that puts more Baht in your account and less in your USA bank's profit/executive bonus booty.

[Pib]

ONLY TRANSFER $U.S, DOLLARS you will lose money if you wire Baht. It is an on shore off shore thing. I lost several hundred $$$ on a transfer last year I have learned my lesson the hard way. My U.S. banker thought that he was giving good advise to first change to baht. DON"T do it.

Good luck

Oh, your banker knew exactly the advice he was giving; it was good advice for the bank's profit margin.

[chiang mai]

ONLY TRANSFER $U.S, DOLLARS you will lose money if you wire Baht. It is an on shore off shore thing. I lost several hundred $$$ on a transfer last year I have learned my lesson the hard way. My U.S. banker thought that he was giving good advise to first change to baht. DON"T do it.

Good luck

Oh, your banker knew exactly the advice he was giving; it was good advice for the bank's profit margin.

Just out of curiosity, did you read posts number 17, 19 and 20?

[bigmove]

my suggestion, better transfer it in USD.When sending the money from US mention in the payment order who shoulder the bank charges which is around 20-40 USD depending on the amount/bank. You can mention bank charges to be absorb by beneficiary or sender. Like if you choose to send 10,000 USD you can add USD 40 so your account in Thailand will receive USD 10,000.

Also note that before bank credit this amount in you Bangkok Bank account, they will ask you what is the money for especially if the amount is USD 10k or more.

BM

[Naam]

And the correct answer is to check first because periodically, offshore rates are better than onshore, case in point is right now where the range of USD/THB TT rates from eight Thai banks (onshore) is 32.50 to 32.60 yet XE (offshore) shows 32.69 and Reuters (offshore) shows 32.67. http://bankexchangerates.daytodaydata.net/default.aspx

I can only reiterate that offshore rates on USD/THB exchange is better currently than onshore rates and if you doubt this, please feel free to check. Now having said that I personally almost always make my currency conversions offshore although there have been times when I have made them offshore in Hong Kong, because the rate was more advantageous and because I use an FX service there that's cost effective for such things. But since I never make transfers of USD from the US with a view to exchanging those funds into THB so maybe there's a piece of the logic that I don't see currently as to why it's always better to do this in Thailand. BTW, I don't have to pay transfer fees or commissions in Hong Kong because of the account I hold there and I am aware that the same account types exist in the US so I really am stymied here.

applies to my bank in Singapore too. but our reasoning makes no sense as the resident "experts" disagree and one points out "It is an on shore off shore thing"

[PattayaParent]

No, this has been the requirement for several years, at least 8. Maybe longer.

Can you please post a link confirming that fact because I don't share you understanding on this point and I have bought and sold condo's a couple of times over that period.

EDIT: in case there's confusion on this point, I support the idea that funds for property purchases must be imported from overseas, in foreign currency.

Only 3 years ago I had to bring in foreign currency to purchase a condo.

[chiang mai]

I'm rapidly coming to the conclusion that large numbers of folks who visit the financial forums on TV can't read, can't comprehend or simply want to post for the sake of posting. All of that's fine when one is bored, drunk, high or feeling neglected but frankly, it does nothing to help those who are looking for a solution to a problem. Mini rant over, thanks for listening.

[Naam]

I'm rapidly coming to the conclusion that large numbers of folks who visit the financial forums on TV can't read, can't comprehend or simply want to post for the sake of posting. All of that's fine when one is bored, drunk, high or feeling neglected but frankly, it does nothing to help those who are looking for a solution to a problem. Mini rant over, thanks for listening.

i came to that conclusion a couple of years ago

[Jingthing]

The issue was USA bank transfers to Thailand. Not Singapore banks.